When I'm talking to a person in opposite time zone and the person greets with "Good morning" or Good evening/afternoon as per his time, is it ok to reply "Good afternoon" (as per my time-zone) when he said "Good Morning", and similarly replying as per my time zone, at other times?

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Depends on your relationship with the person. If you're not in thrall to them, remind them that you're in a different timezone, and would they care to take that into account when they speak to you. You yourself, of course, should take care never to be so thoughtless when you greet them. Play it safe by saying something like *"Hi! Nice to speak to you again!".
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FumbleFingersDec 6 '11 at 6:06

5

But I'm still voting to close. This is etiquette, not language.
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FumbleFingersDec 6 '11 at 6:07

I'm voting to re-open. This site has lots of greetings-related questions and language and etiquette are not completely separate ideas.
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Mr. Shiny and New 安宇Dec 6 '11 at 13:19

1

@FumbleFingers You're correct that this is etiquette and not specifically about English, but when I think about it, I wonder how common is talking to someone in an opposite time zone in a language other than english is? Sure you could, but English being such a common international language, it's a day to day affair for so many people. But that's just my opinion - a non-native English speaker.
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Atul GoyalDec 6 '11 at 18:22

If someone greets you according to their time zone like good morning/evening/afternoon, I think we should wish them the same, rather than explaining them the time zone difference. These would also make them feel comfortable that there is no gap between you people.

If you are on formal terms with the other person, it would be appropriate and necessary to respond with "Good morning". The idea is to respect his gesture of wishing you, in the first place, rather than distracting from it. Also note the pronunciation, your stress will be on Good, to show that you care more about that part of the greeting :).

I believe this may also apply in an informal case, though I am not sure.